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Throughout history, innovations in the monetary system have coincided with major leaps in economic activity. Money in the form of book entries overseen by trusted intermediaries opened the door to new financial instruments that spurred trade and commerce. Paper ledgers then gave way to their digital counterparts, bringing profound changes to the economy and society at large. Tokenisation could take this evolution one step further. Tokens integrate the information in a traditional database with rules and logic governing transfers. By doing so, tokenisation enables the contingent performance of actions, enlarging the universe of possible economic arrangements. Delivery versus payment (DvP), where the transfer of the asset is a precondition for payment and vice versa, is the canonical use case, but more elaborate use cases can be envisaged. Having central bank money in the same venue as the other claims enables the settlement of transactions. For private forms of money, tokenised deposits are preferred to stablecoins due to the former's compatibility with the "singleness of money". The 2023 BIS Annual Economic Report argued for a "unified ledger" that brings together wholesale central bank digital currencies, tokenised deposits and tokenised assets all on the same platform. Some applications will be more amenable to tokenisation than others, depending on the legal and governance challenges. This presentation sketches a "tokenisation continuum" ranging from the low-hanging fruit to the more challenging applications that need to overcome legal and governance obstacles.
he US dollar has been the global reserve currency for over 70 years, enhancing American financial and economic power. Robert Wade writes that the weaponization of the dollar and the dollar payments system against countries such as Russia and Iran over the past decade has incentivised others to find ways to escape the dominance of the US dollar. He looks at just how central the US dollar is to the global economy, and how countries such as the BRICS have been working to create their own alternatives such as new international currencies and using other currencies in important commodity trades such as oil. De-dollarization is coming, but anything close to the end of dollar dominance will be decades ahead.
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SAO PAULO, February 27. /TASS/. Russia will propose to the BRICS members to form an alternative banking structure to secure trade operations that are politically autonomous, Russian Finance Minister Anton Siluanov told Bloomberg Saudi Arabia TV on the sidelines of a meeting of BRICS finance ministers and central bank governors in Sao Paulo, Brazil.
"In order for the BRICS countries to develop normally, we need to think about creating our own financial systems functioning independently of politics and ensuring trade relations between our countries," Siluanov said.
According to him, trade among the BRICS countries is expanding. "For these trade flows to work, we need a reliable payment mechanism. Today we will propose to establish an independent settlement payment system based on new principles, first and foremost digital and blockchain principles, principles that could be comfortable for countries, inexpensive for making payments, and clear," Siluanov stated.
Sounds like Russia wants a BRICS+ CBDC.
Russia is prepared to introduce the use of central bank digital currencies (CBDCs) as tools to facilitate payments among countries of the BRICS bloc, integrated by Brazil, Russia, India, China, South Africa, Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia. In an interview offer to Sputnik, Russian Finance Minister Anton Siluanov stated that Russia, as chairman of the bloc, would promote adopting a system to address the fragmentation of the current “financial, settlement and payment system.”
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There appears to be no way around this worldwide. Still if BRICS back theirs with commodities and we back ours with debt and fear who will win this war long term?Confirmed:
Russia Hints at Development of CBDC-Based BRICS Bridge Payments System – Bitcoin News
Russia has proposed the development of a BRICS-wide payment system that would use CBDC to manage trade settlements.news.bitcoin.com
RE: Post 895
BRICS to Develop Blockchain-Based Payment System to Bypass the Dollar
This isn’t just about a geopolitical power play. Any erosion of the dollar’s status could have significant economic ramifications for the average American.goldseek.com
One central bank head reportedly quoted the Italian philosopher Antonio Gramsci about the dollar’s dominance on the world stage: “The old world is dying, and the new world struggles to be born: now is the time of monsters.”
That’s according to Bank of America strategists led by Michael Hartnett in a research note. They said the remark was made at a Bank of America conference — the bank held a global investment summit in Rome this week.
They also didn’t identify the speaker, though Bank of Italy Gov. Fabio Panetta delivered a speech and Bank of England Gov. Andrew Bailey participated in a panel in a Bank of Italy symposium in Rome this week. Messages left with both central bank press offices weren’t immediately returned.
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... Just consider what independent central banks have achieved in recent years. ...
I like independenceCentral bankers today face many challenges to their independence. Calls are growing for interest-rate cuts, even if premature, and are likely to intensify as half the world’s population votes this year. Risks of political interference in banks' decision making and personnel appointments are rising. Governments and central bankers must resist these pressures.
Strengthen Central Bank Independence to Protect the World Economy
Independence is critical to winning the fight against inflation and achieving stable long-term economic growth, but policymakers risk facing pressure amid a wave of elections this year.www.imf.org
Nope.and I want a monetary system which is independent from central banks
Everybody's happy
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"We hope that the IMF will continue to play a positive role in upholding economic globalization and free trade, keep global industrial and supply chains stable and unimpeded, and foster an open world economy," he said.
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The IMF does not approve of politicizing economic issues, and is willing to deepen cooperation with China for the country's economic transformation and upgrading, reform, and opening up, and enhance its representation and voice in the IMF, Georgieva said.
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